Hawaii Introduces Legislation to Spur Production of Renewable Propane

Hawaii lawmakers recently introduced legislation that will provide financial incentives, in the form of state tax credits, for the production of qualifying renewable fuels, including specifically “renewable propane or renewable liquid petroleum gases.” The total monetary value of tax credits made available under the bill would start at $5 million in 2025 and ramp up to $50 million by 2029.

Reducing tax burdens and financially rewarding the production of renewable propane sends positive economic signals to the marketplace and creates an environment more advantageous to commercial scale production. The Aloha State can drastically lower aggregate carbon emissions by displacing grid electricity consumption with renewable propane, given the state’s overreliance on petroleum-fired power generation and the very low carbon footprint of renewable LPG.

Hawaii is the 48th largest propane market in the country, with 40 million gallons of fuel sold annually. For more information on state efforts to reward the production and consumption of renewable propane, contact NPGA’s Director of State Affairs, Jacob Peterson.